Braeburn Observations
www.braeburnwealth.com
Braeburn Observations
Michael A. Poland, CFA®
March 13, 2017
CEO & Founder Wealth Advisor Portfolio Manager
Long Term Perspective On the day I was born the S&P 500 (stock market) was at 67.94. Of course I didn’t know this, nor did my parents. My parents were about to embark on a couple of difficult decades of dealing with me. By my 21st birthday the S&P 500 was at 134.47, up 97.9% from my birthday.
Unfortunately, my parents were
unaware of this; and probably relieved to have survived the last two decades. As such, there was no nest egg to take advantage of this growth in financial assets. I was an adult, though, and could have begun to think about my future. In reality I did just that, but not until six years later. By my 40th birthday the S&P 500 was at 1,056.75. It didn’t matter much whether I had found the best mutual
my 21st. What mattered most for these past several decades was that I had a plan, even if it were nothing more than maxing out my retirement plan and paying extra on the mortgage. It mattered much more that I did put money away, than whether or not I found the optimal investment vehicle. Most investment goals are multiple years away and should not be affected by the current environment of 24hour news and internet access. If you are 65 years old, 85 is two decades away; and, at 75 years old you should still be working on a 10-year-plus time frame. Certainly, we invest differently at these ages than what we did at 21, but the point is we should not be unduly influenced by the “noise” of the current political media, nor the p-e ratio of the stock market, or what some notable economist just said on CNBC.
fund, or best stock; it mattered more that the stock
Have a sensible plan. Stick to it. --- And, together, we
market was up 685% since my 21st birthday and that
will monitor and adjust this. In the meantime, turn off
for most of the intervening time period I had hammered
the internet and daily news feed; and go golfing, hiking,
money away into my 401(K). Thank you, Carl Munson,
fishing, or go watch your favorite sports team. You
my first financial advisor.
will make much better financial decisions when they
Fast forward to today and I am 55 years old. The market
are made with a longer term time horizon and free of
is up 123% since my 40th birthday and 1,659% since
whatever the current concern of the day is.
The Braeburn Observations is our means of sharing with clients and interested parties what it is we are reading in our research. These are research items, news and statistics that are being considered as we make investment decisions for our clients. Items noted do not necessarily drive an investment decision in and of itself. We are trying to make the best decisions we can given all that we are looking at. We also highlight key financial metrics that will provide a “point in time” glimpse of how the financial markets are behaving. Again, it is often the trend in these metrics and/or anticipated movements that drives our decision making in our clients’ portfolios. All observations are taken at a point in time and should not be used to infer our opinion or to rely upon as a matter of fact that we are currently acting upon.
Investment advisory services offered through Braeburn Wealth Management, an SEC Registered Investment Advisor.
3597 Henry Street, Suite 202 Norton Shores, Michigan 49441 231.720.0743 Main 866.577.9116 Toll free
page 2
Braeburn Observations
www.braeburnwealth.com
About Our Research Sources Lowry’s – Based out of Miami, Florida Lowry’s is the oldest
continuously published Technical Investment Advisory service in the US. Their work, which gives insight into the underlying supply and demand dynamics of the market, is based upon a daily examination of all stocks on the New York Stock Exchange and Nasdaq Stock Market. Lowry’s has pioneered work in the statistical analysis of upside and downside volume statistics including their exclusive measure of buying and selling pressure.
Value Line – Founded in 1931, Value Line is an unbiased
research firm providing intuitive investment research on companies, industries, markets and economies. Value line provides astute fundamental research, trending information and historical data that allows for shrewd decision making.
Barron’s – Since 1921 Barron’s has provided investment
analysis and insight in its weekly publication and, in recent times, it’s continuously updated web site. Barron’s provides a wide range of perceptives, expert analysis and interviews with financial and investment professionals.
Zacks – Founded in 1978 by Len Zacks, PhD. MIT, Zacks is an
investment research firm pioneering work in the area of corporate earnings estimate revisions and stock performance. Zacks believes, and Braeburn agrees, that Earnings Estimate Revisions are the most powerful force impacting stock prices.
Bull and Bear Paperfold by: © Norbert Buchholz.Dreamstime.com
Investor’s Business Daily (IBD) – A daily newspaper designed for the individual investor. All of its products and features are based upon the CAN SLIM Investing System developed by its founder William J. O’Neil. This system identifies the seven common characteristics what winning stocks display. For more on this see his book “How to Make Money in Stocks.”
Stock Trader’s Almanac – A unique annual publication
created by Yale Hirsch in 1967. The almanac is a treasure trove of insightful research originating such important phenomena as the “January Barometer,” the “Santa Claus Rally,” and “Sell in May and Go Away.” It includes data backing, historically proven, cyclical and seasonal tendencies.
The Fat Pitch - an acclaimed blog
that the Business Insider ranks on their annual list of the Top Finance People to Follow. The blog is written by Urban Carmel who has had a long career in financial markets. This blog discusses trends he sees and the business of managing money.
Mauldin Economics - Best selling author, analyst and
financial writer, John Mauldin, taps into his network either directly or through the reams of high-level research he's privy to on a regular basis, to assist in identifying the smartest investments for today's markets; then carefully screened and evaluated by a team of ace analysts.
Braeburn Observations
Michael A. Poland, CFA®
March 13, 2017
CEO & Founder Wealth Advisor Portfolio Manager
Long Term Perspective On the day I was born the S&P 500 (stock market) was at 67.94. Of course I didn’t know this, nor did my parents. My parents were about to embark on a couple of difficult decades of dealing with me. By my 21st birthday the S&P 500 was at 134.47, up 97.9% from my birthday.
Unfortunately, my parents were
unaware of this; and probably relieved to have survived the last two decades. As such, there was no nest egg to take advantage of this growth in financial assets. I was an adult, though, and could have begun to think about my future. In reality I did just that, but not until six years later. By my 40th birthday the S&P 500 was at 1,056.75. It didn’t matter much whether I had found the best mutual
my 21st. What mattered most for these past several decades was that I had a plan, even if it were nothing more than maxing out my retirement plan and paying extra on the mortgage. It mattered much more that I did put money away, than whether or not I found the optimal investment vehicle. Most investment goals are multiple years away and should not be affected by the current environment of 24hour news and internet access. If you are 65 years old, 85 is two decades away; and, at 75 years old you should still be working on a 10-year-plus time frame. Certainly, we invest differently at these ages than what we did at 21, but the point is we should not be unduly influenced by the “noise” of the current political media, nor the p-e ratio of the stock market, or what some notable economist just said on CNBC.
fund, or best stock; it mattered more that the stock
Have a sensible plan. Stick to it. --- And, together, we
market was up 685% since my 21st birthday and that
will monitor and adjust this. In the meantime, turn off
for most of the intervening time period I had hammered
the internet and daily news feed; and go golfing, hiking,
money away into my 401(K). Thank you, Carl Munson,
fishing, or go watch your favorite sports team. You
my first financial advisor.
will make much better financial decisions when they
Fast forward to today and I am 55 years old. The market
are made with a longer term time horizon and free of
is up 123% since my 40th birthday and 1,659% since
whatever the current concern of the day is.
The Braeburn Observations is our means of sharing with clients and interested parties what it is we are reading in our research. These are research items, news and statistics that are being considered as we make investment decisions for our clients. Items noted do not necessarily drive an investment decision in and of itself. We are trying to make the best decisions we can given all that we are looking at. We also highlight key financial metrics that will provide a “point in time” glimpse of how the financial markets are behaving. Again, it is often the trend in these metrics and/or anticipated movements that drives our decision making in our clients’ portfolios. All observations are taken at a point in time and should not be used to infer our opinion or to rely upon as a matter of fact that we are currently acting upon.
Investment advisory services offered through Braeburn Wealth Management, an SEC Registered Investment Advisor.
3597 Henry Street, Suite 202 Norton Shores, Michigan 49441 231.720.0743 Main 866.577.9116 Toll free
page 2
Braeburn Observations
www.braeburnwealth.com
About Our Research Sources Lowry’s – Based out of Miami, Florida Lowry’s is the oldest
continuously published Technical Investment Advisory service in the US. Their work, which gives insight into the underlying supply and demand dynamics of the market, is based upon a daily examination of all stocks on the New York Stock Exchange and Nasdaq Stock Market. Lowry’s has pioneered work in the statistical analysis of upside and downside volume statistics including their exclusive measure of buying and selling pressure.
Value Line – Founded in 1931, Value Line is an unbiased
research firm providing intuitive investment research on companies, industries, markets and economies. Value line provides astute fundamental research, trending information and historical data that allows for shrewd decision making.
Barron’s – Since 1921 Barron’s has provided investment
analysis and insight in its weekly publication and, in recent times, it’s continuously updated web site. Barron’s provides a wide range of perceptives, expert analysis and interviews with financial and investment professionals.
Zacks – Founded in 1978 by Len Zacks, PhD. MIT, Zacks is an
investment research firm pioneering work in the area of corporate earnings estimate revisions and stock performance. Zacks believes, and Braeburn agrees, that Earnings Estimate Revisions are the most powerful force impacting stock prices.
Bull and Bear Paperfold by: © Norbert Buchholz.Dreamstime.com
Investor’s Business Daily (IBD) – A daily newspaper designed for the individual investor. All of its products and features are based upon the CAN SLIM Investing System developed by its founder William J. O’Neil. This system identifies the seven common characteristics what winning stocks display. For more on this see his book “How to Make Money in Stocks.”
Stock Trader’s Almanac – A unique annual publication
created by Yale Hirsch in 1967. The almanac is a treasure trove of insightful research originating such important phenomena as the “January Barometer,” the “Santa Claus Rally,” and “Sell in May and Go Away.” It includes data backing, historically proven, cyclical and seasonal tendencies.
The Fat Pitch - an acclaimed blog
that the Business Insider ranks on their annual list of the Top Finance People to Follow. The blog is written by Urban Carmel who has had a long career in financial markets. This blog discusses trends he sees and the business of managing money.
Mauldin Economics - Best selling author, analyst and
financial writer, John Mauldin, taps into his network either directly or through the reams of high-level research he's privy to on a regular basis, to assist in identifying the smartest investments for today's markets; then carefully screened and evaluated by a team of ace analysts.
